Trump sets 100% tariff on generic drug imports starting in 2028
Why it matters: India supplies nearly half of generic medicines used in the U.S., and the levy rises to 200% in 2029.
President Donald Trump set a new tariff schedule for imported generic drugs, giving manufacturers two years of zero tariffs before a 100% duty begins in August 2028 and doubles to 200% in August 2029. Trump said the phased levy is meant to push companies to move generic drug production and related facilities into the United States. The plan leaves his administration’s tariff approach to patented and branded medicines unchanged. The move carries major implications for India, whose drugmakers provide nearly half of the generic medicines consumed in the U.S., while Chinese companies dominate supplies of many active pharmaceutical ingredients. Generic manufacturers, which operate on thin margins and depend on global supply chains, could face higher costs and pressure to rework production networks.